The Patients' Bill of Rights and post-retirement benefits: The effect on the DJIA

Authors

John H. Earl, Jr., Univ of RichmondFollow
David S. North, University of RichmondFollow

DOI

10.1057/palgrave.pm.5940197

Abstract

This study estimates the effect of a Patients' Bill of Rights on the valuation of the DJIA. It examines only the effect on the Dow firms of post-retirement healthcare benefits. Enactment of a Patients' Bill of Rights is estimated to increase the cost of providing healthcare to employees by 4 per cent. If this cost is not passed on to employees, the cost increases will reduce profits and EPS, which will impact stock prices. The impact of a 4 per cent increase in healthcare costs could translate into a reduction in the level of the DJIA of between 410.20 and 838.86 Dow points.

Document Type

Restricted Article: Campus only access

Publication Date

4-1-2002

Publisher Statement

Copyright © 2002, Springer Nature.

DOI: https://doi.org/10.1057/palgrave.pm.5940197

The definitive version is available at: https://link.springer.com/article/10.1057/palgrave.pm.5940197

Recommended Citation

Earl, J., North, D. The Patients' Bill of Rights and post-retirement benefits: The effect on the DJIA. Pensions Int J 7, 211–227 (2002). https://doi.org/10.1057/palgrave.pm.5940197